Making contracting easy and delivering peace of mind
Newly self employed and wanting to venture into the world of IT contracting for the first time, we were approached by our client to explore the best way to set himself up in business.
The options available can be fairly complex, especially to someone coming from an employed background, and most readily available information is either full of jargon, or biased to that provider’s preferred solution, rather than focussing on the individual’s personal situation.
Out client had attained a 12 month contract worth £70,000 per annum, and was confused about which route to take – limited company / sole trader / umbrella organisation – as at the end of this contract he was unsure whether he would be more likely to stay contracting or take up a permanent position.
We were able to explain clearly the differences and impact of all available options to our client before he made his decision, and advised him that the best, and most financially beneficial, route for him personally was to set up as and operate through a limited company.
We then set up and registered the company with all relevant parties and taxes so our client could start trading immediately. We implemented a pro-active remuneration strategy that ensured that he paid less than half the tax and costs he would have incurred in another route.
We then advised him of key dates (which can now all be found on our TaxApp, downloadable HERE), implications of IR35 and other legislation, and how to best operate as a director.
9 months on and our client has never looked back. He is delighted that he is taking home 85% of his gross pay, in comparison with the 68% he would have taken had he not taken our advice and gone down an alternative route to being self employed.
He is looking at ways to develop his company for the long-term and attain further contracts of business and believes that if he had known how easy the limited company was he would have done this years ago.